Answer:a. The company will be $11,000 better off over the 5 year period if it replaces the old machine.
Explanation:
The purchase of the new machine will bring the annual operating expenses to $9,000 compared to the $15,000 been spent on the old machine which brings in a savings of $6000 and when this is added to the $ 5000 increase sales revenue from the new machine, it means the company will be better off by $11,000 over the next five year if it replaces the old machine.
There is no justification for being $12,000, $20,000 or $6000 better off over the next five year by either replacing or keeping the old machine.
Answer:
Shoe leather costs
Explanation:
(A) Shoe leather costs
(B) Inflation can be defined as the persistent rise in the prices of goods and services. Shoe leather costs can be defined as the costs of time and effort that are encountered by individuals while trying to prevent the effect of inflation. It describes the costs incurred by individuals that visits the bank often inorder to withdraw money needed to purchase goods and services during the time of inflation.
Shoe leather cost arises during the period of high inflation, individuals do not hold large amount of cash because there will be a reduction in the value of the money.
Answer:
This type of income is known as non-operating income in the financial statements
Explanation:
Non-operating income, as the world implies, is the income that a firm earns from activities that are not related to its main economic activity. An example would be a mall, whose main activity is the rental and management of commercial real estate, earning some income from short-term investments in the secondary market. This interest would be reported as non-operating income, and would be treated as such for financial, accounting, and tax purposes.
Answer:
The accounting course choice would depend on a country/legislation where financial statements are prepared.
General advise would be:
- US GAAP external financial reporting - CPA course
- IFRS external financial reporting - ACCA course
- Local financial statement reporting - local course (e.g. for Polish GAAP - "biegly rewident").
Explanation:
Please, see above.
Answer:
A. Vary in total in direct proportion to changes in activity level
Explanation:
Variable cost is a cost that varies with the level of out put. In other words, it is a cost that increases/decreases as output level increases/decreases.
Variable costs are dependent on output hence a constant amount per unit produced. It means that as more and more products are produced, variable costs will also increase; also as fewer products are produced, variable costs also decreases. Examples of variable costs are utility costs, costs of raw materials used in production, sales commission , direct labor costs etc.
